AVROBIO not a good value despite great clinical trial results
AVROBIO got a good pop today from very positive Phase 2 clinical trial results from its kidney drug. Unquestionably the news was good; the drug shows strong efficacy and no adverse events.
However, this was only a Phase 2 trial so there's a long way still to go in the approval process. Meanwhile, the company is losing money and is rated as an overvalued and financially unhealthy company by analytics firms.
AVRO has some support from historical volume in the range from 15.00-15.50, so it could get a short-term bounce from that level, but I wouldn't play this one long-term.
However, this was only a Phase 2 trial so there's a long way still to go in the approval process. Meanwhile, the company is losing money and is rated as an overvalued and financially unhealthy company by analytics firms.
AVRO has some support from historical volume in the range from 15.00-15.50, so it could get a short-term bounce from that level, but I wouldn't play this one long-term.